NO DIRECTORS TO REPLACE THOSE WHO ARE LEAVING

NO DIRECTORS TO REPLACE THOSE WHO ARE LEAVING

Below is a helpful tip from the Davis-Stirling.com Newsletter by ADAMS | STIRLING PLC regarding what to do if you can’t get new directors to step up.

No Candidates. We have two directors whose two-year terms expire this year. Nomination letters went out but no one responded. Are these directors automatically reelected even if they didn’t submit their names for nomination? –Lee B.

ANSWER: If you cannot find anyone willing to serve, your existing directors remain in office until their replacements are elected or appointed. (Corp. Code §7220(b).) If they are unwilling to continue in office, they have the option of resigning. If that occurs, the remaining directors need to recruit and appoint someone to fill the vacancies.


DISCLAIMER. The Davis-Stirling.com Newsletter by ADAMS | STIRLING PLC provides commentary only, not legal advice. For legal advice, you’ll need to hire legal counsel.  You can hire ADAMS | STIRLING PLC; Keep in mind they are considered corporate counsel to associations only.